MARKETABLE SECURITIES ISSUED continued Subordinated notes sharia mudharabah continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 144

33. TAXATION b. Taxes payable continued

December 31, December 31, 2016 2015 Others income taxes payable Bank Mandiri Income Tax Article 25 - 255,893 Article 21 122,588 122,795 Article 4 2 277,193 256,196 Others 94,705 100,764 494,486 735,648 Subsidiaries 103,359 136,176 597,845 871,824 Total taxes payable 1,258,792 2,131,616 c. Tax benefitexpense Year ended December 31, 2016 2015 Tax expense - current: Bank Mandiri 4,435,708 4,932,830 Subsidiaries 653,216 615,228 5,088,924 5,548,058 Tax benefitexpense - deferred: Bank Mandiri 1,182,488 337,514 Subsidiaries 16,366 6,488 1,166,122 331,026 3,922,802 5,217,032 As explained in Note 2ad, income tax for Bank Mandiri and its Subsidiaries are calculated for each company as a separate legal entity. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 145

33. TAXATION continued d. Tax expense - current

The reconciliation between income before tax as shown in the consolidated statements of comprehensive income and income tax calculations and the related estimated current tax expense for Bank Mandiri and its Subsidiaries are as follows: Year ended December 31, 2016 2015 Consolidated income before tax expense and non-controlling interests 18,572,965 26,369,430 Less: Income before tax expense of Subsidiaries - after elimination 2,983,934 1,900,221 Impact of changes in presenting investment from equity method to cost method 735,377 230,537 Income before tax expense and non-controlling interests - Bank Mandiri only 16,324,408 24,699,746 Adddeduct permanent differences: Non-deductible expensesnon-taxable income 48,829 1,732,048 Others 9,478 8,880 Adddeduct temporary differences: Allowance for impairment losses on loans and write-offs 5,536,094 799,374 Allowance for impairment losses on financial assets other than loans 88,974 83,164 Provision for post-employment benefit expense, provisions for bonuses, leave and holiday THR entitlements 690,957 816,084 Unrealised gain on BOT transactions 109,141 7,799 Allowance for estimated losses arising from legal cases 282,830 33,551 Provision for estimated losses on commitments and contingencies 177,583 175,580 Depreciation of fixed assets 43,015 228,162 Unrealised lossessgains on decreaseincrease in fair value of marketable securities and government bonds - fair value through profit or loss 5,765 15,779 Allowance for possible losses of abandoned properties 3,535 - Estimated taxable income 22,178,539 24,664,149 Estimated tax expense - current Bank Mandiri only 4,435,708 4,932,830 Subsidiaries 653,216 615,228 Estimated tax expense - current 5,088,924 5,548,058